Registered Tax Preparer - CPA in registered only status

[LCP]

My state, MIchigan, allows me to maintain my CPA registration without doing CPE anymore. Just can't perform attest functions but can specifically sign tax returns as far as they are concerned.

How's that going to mesh with being an RTP?

I'll still be doing enough CPE to qualify as an RTP.

[Gary2]

My state, MIchigan, allows me to maintain my CPA registration without doing CPE anymore. Just can't perform attest functions but can specifically sign tax returns as far as they are concerned.

How's that going to mesh with being an RTP?

I'll still be doing enough CPE to qualify as an RTP.

I think you're asking the wrong question. As far as I know, you can't call yourself a RTP without passing the IRS exam and satisfying their CPE. Being a CPA allows you to prepare returns without having to be a Registered Tax Preparer, but doesn't entitle you to the RTP designation.

[taxea]

Michigan may not require CPE but IRS does if you intend to correspond with IRS on behalf of your clients.

[newbie]

Michigan may not require CPE but IRS does if you intend to correspond with IRS on behalf of your clients.

Are you sure about that? CPA's & EA's are exempt from the RTP requirements. EA's & RTP's are required by the IRS to take CPE. Are CPA's monitored by the IRS?

[LCP]

I think you're asking the wrong question. As far as I know, you can't call yourself a RTP without passing the IRS exam and satisfying their CPE. Being a CPA allows you to prepare returns without having to be a Registered Tax Preparer, but doesn't entitle you to the RTP designation.

You're right.

The question should have been whether as a "registered-only" CPA I can avoid all of the RTP hoops and prepare tax returns.

[Gary2]

As far as I know, the IRS has no authority to specify any general requirements, such as CPE, for being classified a CPA. See 5 USC 500(c), which says in part "An individual who is duly qualified to practice as a certified public accountant in a State may represent a person before the Internal Revenue Service ...." In other words, it's up to the state.

However, I haven't been able to find any federal laws or regulations that further define what it means to be a CPA. There may or may not be any such things, or similar court cases. It's conceivable that there's something that says "A CPA is someone who, among other requirements, must be allowed by a state to perform attest functions." My gut instinct, however, is that there aren't any, and that the real definition in this context is that "A CPA is anyone whose state allows that person to hold himself out to the public using the CPA designation, without regard to what activities such designation authorizes."

[Gary2]

You're right.

The question should have been whether as a "registered-only" CPA I can avoid all of the RTP hoops and prepare tax returns.

To which the answer is, with the exception of the PTIN requirements, yes, with the caveat that I'm not sure what MI means by "registered-only CPA". See my immediately preceding reply.

Are you allowed to advertise yourself as a CPA? Solicit the usual business, other than attestation, that a CPA would solicit? Include "CPA" after your name on business cards? Or does it mean that you're on a state list without being allowed to practice (vaguely analogous to being on the IRS's list of inactive EAs)?

[taxxcpa]

CPE requirement for CPA

You may not be required to take CPE to maintain your license, but that does not mean that having the license would enable you to prepare taxes and get a PTIN without taking any CPE whatsoever.

In my opinion, you would need to take at least the amount of CPE that would be required for other preparers who are neither CPAs or EAs.
The reason CPAs are exempt from the requirements for those without any kind of credentials is because it is assumed (perhaps erroneously) that they have to take at least the equivalent amount of CPE to maintain their license.

So, even if it is not so stated, you would be on safer grounds if you took the same CPE, including ethics, that is required of a CPA who is not exempt from CPE.

If you don't want to spend a lot of time and money on seminars, try CPE Depot.

[joanmcq]

And how, praytell, would you keep up on tax changes without CPE? I might have to take it to maintain my license (and are your sure a 'registered only' license allows you to practice at all? In CA, you can become 'inactive'; for example if you retire but want to maintain the license should you want to start working again). I take enough CPE to keep me abreast of what I need to know to prepare my client's returns and that is a LOT more than what is required of me.

[Lion]

Aicpa

Why not contact your state's arm of AICPA. They probably lobbied for or against the idea of a lesser CPA designation and have studied it from all angles. Seek their advice on whether you really don't need any CPE, whether you can prepare tax returns/represent clients before the IRS and MI, etc.

[Gary2]

And how, praytell, would you keep up on tax changes without CPE? I might have to take it to maintain my license (and are your sure a 'registered only' license allows you to practice at all? In CA, you can become 'inactive'; for example if you retire but want to maintain the license should you want to start working again). I take enough CPE to keep me abreast of what I need to know to prepare my client's returns and that is a LOT more than what is required of me.

I was going to add a similar comment, until I reread the base note and saw that LCP said at the outset that he will take enough of the right CPE that would qualify for maintaining the RTP designation, just not enough of the right ones for the full CPA privileges.

[taxea]

Are you sure about that? CPA's & EA's are exempt from the RTP requirements. EA's & RTP's are required by the IRS to take CPE. Are CPA's monitored by the IRS?

Whether or not the requirement is by the IRS, CPA's have yearly CPE requirements.

[LCP]

To which the answer is, with the exception of the PTIN requirements, yes, with the caveat that I'm not sure what MI means by "registered-only CPA". See my immediately preceding reply.

Are you allowed to advertise yourself as a CPA? Solicit the usual business, other than attestation, that a CPA would solicit? Include "CPA" after your name on business cards? Or does it mean that you're on a state list without being allowed to practice (vaguely analogous to being on the IRS's list of inactive EAs)?

From the MACPA ........

Registered Only vs. Active License
A CPA is considered to be in "Registered Only" status in the state of Michigan if the individual still holds a CPA certificate, but does not maintain an active license by completing the yearly continuing education requirement as mandated by Michigan law. It is okay for an individual to use the CPA designation while in "Registered Only" status, as long as they do not hold themselves out as practicing public accounting to the public. While in "Registered Only" status, the individual:

Can use the CPA credential on their business card,
Prepare and sign a tax return, but cannot use the CPA designation
Cannot provide public attestation (including auditing) opinions on financial statements

[Gary2]

From the MACPA ........

Registered Only vs. Active License
A CPA is considered to be in "Registered Only" status in the state of Michigan if the individual still holds a CPA certificate, but does not maintain an active license by completing the yearly continuing education requirement as mandated by Michigan law. It is okay for an individual to use the CPA designation while in "Registered Only" status, as long as they do not hold themselves out as practicing public accounting to the public. While in "Registered Only" status, the individual:

Can use the CPA credential on their business card,
Prepare and sign a tax return, but cannot use the CPA designation
Cannot provide public attestation (including auditing) opinions on financial statements

This sounds like something that could only be answered reliably through litigation. I think going for the explicit RTP or EA designation will be more cost and time effective.

[Uncle Sam]

Could someone here please explain to me why a higher level professional would risk not taking the minimum CPE to retain a CPA license, and prefer to submit to a written examination for a much more restrictive license with less clout?